Published By Mia Gardner : 20 Apr 2020 | Last Updated: 30 Dec 2020
The group released their second quarter results, and declared that other online casino income has more than made up for any losses experienced.
A spokesperson specifically referred to casino and Poker as the company’s saving grace, with the combined income of the two revenue streams not only making up for losses in other sectors, but even managing to push overall company revenue into potential record territory.
In more detail, the spokesperson declared that the trends of the previous quarter, which saw growth of 44% when taking all verticals into account, was likely to continue into the second quarter. The first quarter saw online casino revenue of around $735 million. This in itself was a record, jumping up 27% from the previous year’s income of $580 million.
Operating income is predicted to be between $140 million and $149 million, a massive leap of 113% from the previous year, which sat at $62 million.
The central reasons for massive online casino growth have been attributed to steady momentum in the United Kingdom and Australia.
Though, it wasn’t all good news. The spokesperson was sure to point out that although the situation is well under control now, that things may turn sour if the current world health crisis continues for an unexpectedly long period of time. This, however, was mentioned as an unlikely occurrence, and it was stressed that the iGaming markets is stable for the time being.
But even with online casinos making up for losses, the Stars Group took time to explain the results of negative impact that was being experienced. It was stated that, as long as sporting events were being suspended, that losses in the United Kingdom and Australia were substantial. Estimations were that at between £10 million and £15 million were lost in the United Kingdom every month, and AU$10 million in Australia.
Rafi Ashkenazi, CEO of Stars Group, elaborated on the situation. His declaration was that, thanks to diversification and encouraging trends, the company was well equipped to successfully navigate the world health crisis. He also mentioned that the merger with Flutter Entertainment was still on track, and would likely be completed by the second quarter.